N.Y. Public Authorities Law § 2407: Bond limits

§ 2407. Bond limits. (1) Except for notes issued in nineteen hundred

seventy and nineteen hundred seventy-one, the agency shall not issue

bonds and notes, the interest on which is not included in the gross

income of the holders of the bonds and notes under the United States

Internal Revenue Code of 1986, as amended, or any subsequent

corresponding internal revenue law of the United States, in an aggregate

principal amount exceeding ten billion nine hundred twenty million

dollars, excluding from such limitation (a) an amount equal to any

original issue discount from the principal amount of any bonds or notes

issued, (b) bonds and notes issued to refund outstanding bonds and

notes, and (c) bonds and notes not described in paragraph (b) of this

subdivision issued to refund outstanding bonds and notes in accordance

with the provisions of the Internal Revenue Code of 1986 or the Tax

Reform Act of 1986, as amended, where such bonds or notes are not

included in the statewide volume cap on private purpose bonds under

section 146 of such code provided, however, that upon any refunding

pursuant to this paragraph or paragraph (b) of this subdivision, such

exclusion shall apply only to the extent that the amount of the

refunding bonds or notes does not exceed (i) the outstanding amount of

the refunded bonds or notes, plus (ii) to the extent permitted by

applicable federal tax law, costs of issuance of the refunding bonds or

notes to be financed from the proceeds of the refunding bonds or notes.

No such bond or note shall be issued by the agency on or after July

twenty-third, two thousand twenty-seven, excluding bonds and notes

issued to refund outstanding bonds and notes. No more than two billion

four hundred million dollars of proceeds of bonds or notes issued by the

agency pursuant to this subdivision shall be used for mortgage purposes

by blending with proceeds of bonds issued pursuant to subdivision two of

this section.

(2) In connection with the issuance of bonds for the purpose of

furthering programs described in this title, the agency is authorized to

covenant and consent that the interest on any of its bonds, notes or

other obligations shall be includable, under the United States Internal

Revenue Code of 1986, as amended or any subsequent corresponding

internal revenue law of the United States, in the gross income of the

holders of the bonds to the same extent and in the same manner that the

interest on bills, bonds, notes or other obligations of the United

States is includable in the gross income of the holders thereof under

said Internal Revenue Code or any such subsequent law. Pursuant to this

subdivision, the agency shall not issue bonds, notes or other

obligations in an aggregate principal amount exceeding one billion nine

hundred fifty million dollars, excluding from such limitation bonds,

notes or other obligations issued to refund outstanding bonds, notes or

other obligations. No such bond, note or other obligation shall be

issued by the agency on or after July twenty-third, two thousand

twenty-seven, excluding bonds, notes or other obligations issued to

refund outstanding bonds, notes or other obligations and no mortgages

shall be purchased with the proceeds of such bonds, notes or other

obligations after such date. The board of directors of the agency shall

establish program guidelines for purposes of bonds, notes or other

obligations issued pursuant to this subdivision. The board of directors

shall establish from time to time maximum income limits of persons

eligible to receive mortgages financed by bonds, notes or other

obligations issued pursuant to this subdivision, which income limits

with respect to one-third of the total principal amount of mortgages

authorized to be so financed shall not exceed one hundred twenty-five

percent of the latest maximum income limits permitted under the Internal

Revenue Code of 1986, as amended, for mortgagors financed by mortgage

revenue bonds, with respect to one-third of such principal amount

authorized to be so financed, shall not exceed one hundred thirty-five

percent of such income limits, and with respect to one-third of such

principal amount authorized to be so financed, shall not exceed one

hundred fifty percent of such limits, provided that notwithstanding the

foregoing, the maximum income limits of persons eligible to receive

mortgages financed by the agency under its neighborhood revitalization

program (and any successor program) shall not exceed one hundred fifty

percent of the latest maximum income limits permitted under the Internal

Revenue Code of 1986, as amended, for mortgagors financed by mortgage

revenue bonds.

(3) The fixing of the statutory maximums in this section shall not be

construed as constituting a contract between the agency and the holders

of its bonds or notes that additional bonds and notes may not be issued

subsequently by the agency in the event that such statutory maximums

shall subsequently be increased by law.